SEGMENTATION, TARGETING and POSITIONING

  

Segmentation

According to AMA market segment refers to "The process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs. Each subset may conceivably be chosen as a market target to be reached with a distinct marketing strategy. The process begins with a basis of segmentation-a product-specific factor that reflects differences in customers' requirements or responsiveness to marketing variables. Segment descriptors are then chosen, based on their ability to identify segments, to account for variance in the segmentation basis, and to suggest competitive strategy implications. To be of strategic value, the resulting segments must be measurable, accessible, sufficiently different to justify a meaningful variation in strategy, substantial, and durable.

The elements of segmentation is depicted in the figure below.

Targeting

Targeting, according to AMA, is “narrowly focusing ads and keywords to attract a specific, marketing profiled searcher and potential customer.

”Target market is defined as the particular segment of a population on which the seller focuses its merchandising and promotional expertise to satisfy that sub-market in order to accomplish its profit objectives.

Since 5 Star is consumed by people from every age group, geographic location, gender and so its ads and promotional campaigns are designed in such a way that it targets all the sections of the society. In short rich or poor, male or female, kid or adult, everyone is a consumer of 5 Star.

Positioning

Product positioning as defined by AMA is ‘the way consumers, users, buyers and others view competitive brands or types of products. As determined by market research techniques, the various products are plotted onto maps, using product attributes as dimensions.”